After carrying out an exploration program in 1990, Placer Dome (TSE) terminated an option agreement with Gerle Gold (VSE) providing for exploration of the McConnell Creek gold property north of Smithers, B.C. During 1990, the major carried out trenching and a 10-hole drilling program on 11 of the 27 targets located in its 1989 program. Thirteen of the 30 trenches are reported to have located shear zones, but without significant quartz veining that characterizes the known gold mineralization.
Five targets were drilled, including four that were trenched. Six of the 10 holes located mineralization containing geochemically anomalous gold values, and hole 90-5 drilled in the IP anomaly returned 8.2 ft. of 0.15 oz. gold.
Gerle Gold President Raymond Hrkac said the company plans to continue to use a geochemical approach to define the gold targets on the property. He also indicated that the company will seek joint venture participation in this endeavor.
Placer Dome retains a 19.6% interest in Gerle Gold and is the company’s largest single shareholder.
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